Vietnam: Imported Scrap Market Turns Silent; Prices Continue Downtrend

SteelMint learned from market participants that imported scrap market in Vietnam turns sluggish after witnessing limited trades last week on restocking ahead of New Year holidays. Over year-end lull, the market continues downtrend in terms of prices however most of the buyers stand away from active trading eyeing further correction in offers.

The Japanese market is already closed for Christmas holidays. Suppliers turn silent and no fresh offers are available in the market. However, domestic scrap prices showed stability last week as prices seem to have bottomed out in Japan.

According to sources, a leading steel mill in Southern Vietnam, Pomina Steel booked a bulk cargo comprising a considerable quantity of Hong Kong origin HMS 1&2 (50:50) at around USD 293/MT, CFR Vietnam. This trade pulls prices down USD 4-5/MT as against the last report at USD 297-298/MT, CFR.

Very limited buying interest was seen in the market as buyers are targeting at USD 290-293/MT, CFR levels for Hong Kong HMS 1&2 (50:50) and at around USD 285-290/MT, CFR for Japanese H2.

According to SteelMint’s price assessment, USA and Europe origin, HMS 1&2 (80:20) scrap stands in the range USD 317-320/MT, CFR Vietnam, down USD 4-5/MT W-o-W.

Last week, a mixed bulk scrap cargo from Australia had booked comprising HMS 1&2 equivalent to USD 317/MT, CFR.

Declining domestic billet offers – Vietnamese local steel mills surprisingly observed a sharp fall in billet offers last week by USD 30-40/MT following which scrap buying remained very limited. Formosa Ha Tinh Steel was reported to offer 150 mm billet in the range USD 414-420/MT, ex-work.

Key updates –

— According to SteelMint’s price assessment, Turkey observed a sharp fall in prices last week. US origin HMS (80:20) assessed at USD 293-295/MT, CFR; European HMS 1&2 (80:20) at around USD 285-286/MT, CFR Turkey. Steel mills eye further correction.

— Price assessment for USA origin HMS (80:20) in containers moved down at USD 275-280/MT, CFR Taiwan as against last weeks’ report of USD 280-283/MT, CFR.